SEAT S.A. Signs A New Collective Agreement That Guarantees Labour Stability, Improves Economic Conditions and Prepares the Organisation for Electrification

• This agreement provides a framework of stability for the company’s ongoing transformation, focused on electrifying SEAT S.A., boosting CUPRA’s growth and strengthening the organisation’s business model
• The pre-agreement, which was ratified by referendum at the end of June by 11,000 workers affiliated to the majority unions, will be effective for the period from 1 January 2022 through to 31 December 2026

The Management and the majority unions at SEAT S.A. (UGT and CCOO) have signed the company’s 20th Collective Agreement, following the pre-agreement reached last June and ratified by 11,000 workers affiliated to the majority unions. The signing of this agreement guarantees a framework of stability for the next 5 years for employees and prepares SEAT S.A. for its transformation to the electric car.

This new agreement was signed at a ceremony at the company’s corporate headquarters in Martorell, attended by Wayne Griffiths, CEO of SEAT S.A.; Laura Carnicero, Executive Vice-President for People and Organisation at SEAT S.A.; Matías Carnero, General Secretary of UGT at SEAT S.A and Chairman of the SEAT S.A. Intercentre Committee; and Rafa Guerrero, General Secretary of CCOO at SEAT S.A., together with other representatives from the company and unions.

This new Collective Agreement sets out a solid industrial plan for the company, which prioritises guaranteeing labour stability, improving economic conditions for employees, and offering greater flexibility in work organisation. In addition, the agreement includes a training and qualification programme focused on the electric car and new technologies, which is the most ambitious programme of its kind in SEAT S.A.’s history.

“We have signed the collective agreement for the electrification of SEAT S.A. This agreement spanning the next 5 years will serve as the basis for the transformation of the company. It is a socially responsible agreement for employees and ensures that the company is a sustainable, robust organisation, ready to lead electromobility in Spain, with the aim of becoming a global benchmark,” explained Laura Carnicero, SEAT S.A.’s Executive Vice-President for People and Organisation. Moreover, Carnicero added that “this collective agreement clearly reflects one of our key commitments, that is to protect and promote quality employment in the company. I would like to thank the union representatives, particularly Matías Carnero and Rafa Guerrero, for their collaboration throughout the negotiation process.”

In the framework of its commitment to reorganising the company structure in a socially responsible way through adopting non-traumatic measures, SEAT S.A. has launched a social plan for the suspension of contracts, to which employees from 61 years of age can apply voluntarily. In parallel, the gigafactory in Sagunto opens a possibility for those employees who want to join the project. In addition, there is a solution for the El Prat plant, as six new components may be awarded to the plant.

Matías Carnero, General Secretary of UGT at SEAT S.A and Chairman of the SEAT S.A. Intercentre Committee, said: “The new collective agreement is balanced and acceptable given the current situation and taking into account the context of the transformation required to address electrification. This agreement lays the foundations for a natural transition to guarantee the workers’ futures and ensure that the next generations will not face employment problems.”

Rafael Guerrero, General Secretary of CCOO at SEAT, said: “This agreement lays the foundations for governing the transformation process towards sustainable mobility in an inclusive manner. It does so with the plan for the future, guaranteeing workload for the El Prat factory, promoting the electrification of Martorell, committing to the second electric platform, taking advantage of new business opportunities such as the circular economy project and with the voluntary suspension plan.”

Awaiting the decision on its application to the Spanish Government’s Strategic Project for Economic Recovery and Transformation (in Spanish PERTE) for the Electric and Connected Vehicle, through the initiative Future: Fast Forward, SEAT S.A., the Volkswagen Group and partners are ready to mobilise 10 billion euros, with the aim of turning Spain into a European hub for electromobility. This Collective Agreement creates a framework of stability for this historic transformation of the automotive industry in Spain.

Source: SEAT S.A